Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The market turned volatile in the third quarter. In the third quarter, the fund returned 3.21% (gross) and 2.99% (net) compared to 3.19% for the Russell 1000 Growth Index and 5.89% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Focus Growth Strategy highlighted stocks like Workday, Inc. (NASDAQ:WDAY), in the third quarter 2024 investor letter. Workday, Inc. (NASDAQ:WDAY) is a company that offers enterprise cloud applications. The one-month return of Workday, Inc. (NASDAQ:WDAY) was 7.89%, and its shares gained 13.65% of their value over the last 52 weeks. On November 11, 2024, Workday, Inc. (NASDAQ:WDAY) stock closed at $264.15 per share with a market capitalization of $70 billion.
Polen Focus Growth Strategy stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q3 2024 investor letter:
“We added to several existing positions in the quarter including Adobe, Workday, Inc. (NASDAQ:WDAY), Shopify, MSCI, and Paycom Software. Workday is still growing revenue at a mid-to-high-teens rate, but in recent years, slower macroeconomic growth has made closing deals more challenging. Amidst a pullback, we increased our position as we found the valuation attractive for a well-positioned, recurring revenue business with still strong growth potential. The company also recently stated publicly that it will be focused on expanding profit margins meaningfully over the next five years—something we have expected and are pleased to see.”
A group of finance professionals analyzing market trends on their computer screens.
Workday, Inc. (NASDAQ:WDAY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the second quarter which was 83 in the previous quarter. While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Workday, Inc. (NASDAQ:WDAY) and shared the list of top ten long software stock positions among institutional investors according to Jefferies. Workday, Inc. (NASDAQ:WDAY) detracted from the performance of Polen Global Growth Strategy in the previous quarter due to a lower-than-expected sales growth forecast. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.